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Dynamic stock rotational system
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The Dynamic Stock Rotational System is an investment selection tool utilized by investment companies (mutual funds), exchange traded funds (ETFs) and private investors for allocating assets in investment portfolios. The system was created by Stephen Pizzuti, an applications engineer, who after graduating from Rollins College (1986), began a 20 year quest to develop a reliable prognostication tool for stock selection utilizing a variety of quantitative and technical criteria. Quantitative Analysis. According to the theory, "Nothing should be ignored or separate in the analysis of an investment. The joining of technical and quantitative factors are synergistically powerful; and essential in creating a superior research tool." The objective of the system is the identification of Alpha stocks, with Alpha equaling the measure of excess returns of one investment compared to another. The higher the Alpha means the greater potential return compared to the universe of stocks being measured. The Alpha is derived from a quantitative acceleration of calculations of earnings model conjoined with a technical acceleration of earnings model. The result is then filtered through a matrix of the entire market to determine fields that are overbought or oversold. Contrarian and alternate theories Significant emphasis on quantitative or fundamental research is critical to most stock selection theory because of the practical aspects of ensuring that the company being represented by a security, whether stock, bond, or variant, is actually a viable entity. The abandonment of common sense due diligence has resulted in repeated financial disasters such as the collapse of Enron to the more recent TARP crisis. 
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